City
Epaper

Modified credit norms to auto sector for liquidity: SBI

By IANS | Updated: July 30, 2019 21:10 IST

In the wake of a subdued consumption-led slowdown in the auto industry, lending major State Bank of India on Tuesday said it had modified its credit norms for financing of automobile dealers and vehicle loans to individuals, "so as to ensure that the sector does not face any stress".

Open in App

The lender, which had changed its credit norms in January 2019, said that it is continuously reviewing its exposure to the sector and is "actively engaged" with auto majors, dealers and the industry associations like Federation of Automobile Dealers Associations (FADA).

"The bank in consultation with auto majors has taken steps to provide support to the dealers for inventory funding by them to tide over the current phase," a SBI spokesperson said.

"The bank is committed to take any further steps necessary in this regard."

On Monday, SBI's senior management and FADA officials met in Mumbai to discuss the problems faced by the industry.

Lately, heavy tax rates, farm sector distress, stagnant wages and liquidity constraints have culminated into a consumption downtrend which has impacted the jobs market.

Sectors such as automobile has been hit the hardest due to the downtrend. Consequently, the inventory levels with automobile dealerships have exponentially increased.

Figures from the Society of Indian Automobile Manufacturers (SIAM) showed that domestic passenger car sales in June went down by 24.07 per cent to 139,628 units.

In the commercial vehicle segment, domestic sales were down by 12.27 per cent to 70,771 units last month.

Additionally, overall sales of two-wheelers, which includes scooters, motorcycles and mopeds, edged lower by 11.69 per cent to 1,649,477 units.

( With inputs from IANS )

Open in App

Related Stories

TechnologyCabinet approves expansion of academic, infrastructure capacity of 5 IITs

CricketKKR to wear special kit at training before CSK game, dedicated to their 'Shahoshi Rani' initiative

National'No more', India's firm message to terror networks after Operation Sindoor

BusinessCabinet approves national scheme for ITI upgradation and 5 national centres of excellence for skilling

EntertainmentThis is the face of the Indian Army: Sivakarthikeyan recalls dialogue from 'Amaran' to hail Indian Army's 'Operation Sindoor'

कारोबार Realted Stories

BusinessStelatoes Expands Footprint in Delhi NCR with a New Store Launch in Faridabad

BusinessTimex Group India Ltd Closes FY25 with Unprecedented Revenue Growth and Record-Breaking Profits

BusinessJoy Business Center - A Dynamic New Commercial Hub at Celebration Bazaar, Khanna

BusinessSarkari Kaam Unveils Rs100 Crore Soft Loan Scheme at 3.25% to Boost Indian Industry

BusinessWorld should have a universal regulatory framework for developing techs like AI: FM Sitharaman